Foreign funding: Delhi HC directs action against Cong, BJP
November 18, 2015 12:33
The Delhi High court on Friday held that the Congress and the BJP had "prima facie' violated the provisions of the Foreign Contribution Regulation Act by accepting donations from companies like Vedanta and Sesa Goa and directed the Central government and the Election Commission to probe their funding receipts within six months.
However, the Congress in its defence said there had been no violation of the law. The head of the Congress Legal Cell, KC Mittal said: "there is no violation of the law. Under section 591(2) of the Companies Act, if a company is incorporated abroad but has Indian share holding above 50 per cent then it is deemed to be an Indian company."
He added that the same issue came up in 2009 when Vedanta had made a donation earlier.
However, the Congress in its defence said there had been no violation of the law. The head of the Congress Legal Cell, KC Mittal said: "there is no violation of the law. Under section 591(2) of the Companies Act, if a company is incorporated abroad but has Indian share holding above 50 per cent then it is deemed to be an Indian company."
He added that the same issue came up in 2009 when Vedanta had made a donation earlier.
TOP STORIES
© 2024 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Feedback - About us - Terms of use - Grievances